View more on these topics

Product matters

The New Start mortgage for divorcees from The Mortgage Business is the second mortgage this year targeted at the increasing number of divorcees in the UK.

The first, from Charcol, enabled a divorced partner to use maintenance income without a court order as a source of income for a mortgage.

The New Start loan, marketed by The Mortgage Partnership, not only helps in this way for the partner receiving maintenance but also assists the partner who is paying the maintenance to buy a property and remain on the mortgage deed of the original property if required.

The mortgage deducts the annualised monthly maintenance and mortgage payments, like normal loan commitments, rather than needing to cover both mortgages.

This is an excellent feature, but not exclusive to TMB. For example, Portman and Alliance & Leicester will treat maintenance and mortgage payments in the same way, up to 85 per cent loan to value. Someone could take advantage of their mainstream residential products, which could offer more advantageous rates and a wider choice than the 5.84 per cent variable rate offered by New Start.

The features have been well thought through. Where the product falls down is in the interest rate and the fact that it is variable. Someone paying maintenance and a mortgage on the second property could well be stretching themselves. A fixed or capped rate could be more prudent.

It is likely that we will see more products like this launched to target niche segments and provide solutions.

David Hollingworth is a mortgage specialist at London & Country Mortgages


Scottish Mutual chief executive steps down

Scottish Mutual chief executive Graham Pottinger is leaving the Abbey National group at the end of June. His departure follows a restructuring of the Abbey’s long term savings businesses. The businesses are being brought in to one division which will be headed up by Mac Millington who was formerly managing director of its business to […]

Inside edge:

Every week brings news of fund manager changes and an inevitable raft of comment from IFAs and others.Some will say that there is nothing to be concerned about. There is a good team, there is a process at the investment house. Other fund manager departures will lead to funds being placed on a “watch” list.There […]

Solus loses two fund managers

Solus Investment Funds managing director John Eckersley and investment director David Soutar are leaving the company to set up an investment boutique. Eckersley, who managed the Solus charity UK equity fund, has been with the company for 10 years but is quitting to establish Castlefield Investments. He will be joined by UK equity income and […]

Lenders deny boom is over for BTL

Lenders are hitting back at warnings from analysts and estate agents that the buy-to-let boom will soon be over.Specialist lenders The Mortgage Business and Future Mortgages dispute claims that buy-to-let is set to decline because of slowing rental demand, a poss-ible increase in interest rates and a recovering equities market.TMB argues that, contrary to concerns […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm